Institute Management Committee of ITI Matar, Kheda V. The ITO (Exemption) Ward-1, Vadodara

ITA 511/AHD/2023

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 5490 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-11-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Next Hearing Date: 05-11-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 20-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Initiation of penalty proceedings

Judgement Text

ITA No.511/Ahd/2023 Assessment Year: 2014-15 Page 1 of 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.511/Ahd/2023 Assessment Year: 2014-15 Institute Management Committee of ITI, Matar, 01, IMC of ITI Matar, Sokhda, Matar, Kheda Gujarat – 387 570. [PAN – AAATI 7547 L] Vs. Income Tax Officer (Exemption), Ward-1, Vadodara. (Appellant) (Respondent) Assessee by Shri Parin S. Shah, CA Revenue by Shri M. Anand Kumar, Sr. DR Da te o f He a r in g 06.11.2023 Da te o f P ro n o u n ce m e n t 08.11.2023 O R D E R This appeal is filed by the Assessee against order dated 02.12.2022 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2014-15. 2. The Assessee has raised the following grounds of appeal :- “1. The order passed by AO and confirmed by NFAC is bad in law and required to be quashed. 2. Ld. NFAC erred in law and on facts in confirming action of AO for disallowance of deduction u/s.10(23C) of the Act of Rs.15,83,206/-. 3. Ld. NFAC erred in law and on facts in confirming action of AO in making addition of Rs.20,83,120/- of interest income reflected on 26AS ignoring fact that same has already been disclosed while filing return of income. 4. Initiation of penalty proceedings u/s.271(1)(c) is unjustified. 5. Charging of interest u/s.234B, 234C, 234D are unjustified.” ITA No.511/Ahd/2023 Assessment Year: 2014-15 Page 2 of 3 3. The return of income for A.Y. 2014-15 was filed by the assessee on 10.12.2014, declaring total income at Rs. Nil. The case was selected for scrutiny under the reason “Large profit and gains in the case of a trust”. Notice u/s.143(2) of the Income Tax Act, 1961 was issued on 31.08.2015 was served upon the assessee. The Notices u/s.142(1) r.w.s. 129 of the Act along with questionnaire was issued on various dates and served upon the assessee. The assessee did not file any reply or attended the assessment proceedings, therefore, the assessment was completed on 07.12.2016 u/s.144 r.w.s.143(3) of the Act and disallowed Rs.15,83,206/- in respect of the claim u/s.10(23) of the Act as well as addition of Rs. 20,83,120/- in respect of interest income as per 26AS. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. 5. The Ld. AR submitted that there is a delay of 141 days in filing the present appeal for which separate affidavit explaining the reason has been stated. Therefore, delay may be condoned. The Ld. AR submitted that since the assessment Order as well as the order of the CIT(A) are ex-parte and the assessee did not have the opportunity of hearing, the matter may be remanded back to the file of the Assessing Officer for proper adjudication. 6. The Ld. DR opposed the condonation of delay and relied upon the assessment order and the order of the CIT(A). 7. Heard both the parties and perused all the relevant material available on record. The reason for delay explained by the assessee is that the order of the CIT(A) was delivered in SPAM of the folder of the mail and was not located at the particular time and subsequently when the department initiated the recovery of outstanding demand, the assessee came to know about the order of the CIT(A) dated 02.12.2022. The reason appears to be genuine, hence delay of 141 days is condoned. Besides, the assessee was not able to represent its case before the Assessing Officer or was not able to file the evidences. The order of the CIT(A) is also ex-parte. Thus, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issue after verifying the same. The assessee should file evidences for supporting the case before the Assessing Officer. The Assessing Officer after taking cognizance of the evidence decided ITA No.511/Ahd/2023 Assessment Year: 2014-15 Page 3 of 3 the matter as per law. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. The appeal of the assessee is partly allowed for statistical purpose. 8. In result, appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the open Court on this 8 th November, 2023. Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 8 th November, 2023 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad